Health effects on labour market exits and entries |
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| Authors: | Pilar García-Gómez Andrew M. Jones Nigel Rice |
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| Affiliation: | 1. Erasmus School of Economics, Erasmus University Rotterdam, Netherlands;2. Centre de Recerca en Economia i Salut, Spain;3. Department of Economics and Related Studies, University of York, United Kingdom;4. Centre for Health Economics, University of York, United Kingdom;1. School of Economics, The University of Sydney, Australia;2. Institute for the Study of Labor (IZA), Germany;1. Behavioural Science Centre, Stirling Management School, Stirling University, FK94LA, United Kingdom;2. UCD Geary Institute, University College Dublin, Belfield, Dublin 4, Ireland;1. Humboldt-Universität zu Berlin, Department of Social Sciences, Universitätsstr. 3b, 10117 Berlin, Germany;2. DIW Berlin, Mohrenstr. 58, 10117 Berlin, Germany;1. Rockwool Foundation Research Unit, Sølvgade 10, 2. tv., DK-1307 Copenhagen K, Denmark;2. KORA, Danish Institute for Local and Regional Government Research, Købmagergade 22, DK-1150 Copenhagen K, Denmark |
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| Abstract: | This paper analyses the role of health on exits out of and entries into employment using data from the first twelve waves of the British Household Panel Survey (1991–2002). We use discrete-time duration models to estimate the effect of health on the hazard of becoming non-employed and on the hazard of becoming employed. The results show that general health, measured by a variable that captures health limitations and by a constructed latent health index, affects entries into and exits out of employment; the effects being higher for men than for women. The results are robust to different definitions of employment, and to the exclusion of older workers from the analysis. |
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